UAW to seek better contract, try to organize plants at Flex-N-Gate

Feb. 13, 2013

Written by

Detroit Free Press Business Writer

The UAW will hold rallies today at seven plants operated by auto supplier Flex-N-Gate as it tries to bargain for a better contract at some plants and organize a union at others.

Flex-N-Gate, a $3-billion auto parts supplier headquartered in Urbana, Ill., is owned by Shahid Khan, who also owns the Jacksonville Jaguars NFL franchise and ranks 179th on the Forbes 400 list of wealthiest Americans with an estimated net worth of $2.5 billion.

The company makes metal and plastic components and mechanical assemblies for the auto industry.

The UAW's focus on Flex-N-Gate comes as it also is ramping up pressure on Nissan as it tries to organize workers at an assembly plant in Canton, Miss.

UAW President Bob King has made organizing a top priority and vowed in 2010 to organize an Asian or German automaker during his four-year tenure, but so far has been unable to do that.

However, the UAW has recently organized some plants operated in the South by multibillion-dollar suppliers like Johnson Controls and Faurecia.

By organizing suppliers, the UAW is trying to prevent nonunion companies from undercutting wages paid at union-represented plants, said Cindy Estrada, UAW vice president for organizing suppliers.

"It goes back to the argument that we have to be competitive," Estrada said. "I understand that argument. The problem is nobody is telling those nonunion shops that enough is enough. How low can you go?"

Estrada also said Flex-N-Gate has a poor safety record at a number of its nonunion plants.

She also said workers at some plants have been illegally fired or disciplined for attempting to form a union.

"Where we have a union in place, I think the relationship between workers and management is good," Estrada said. "Where there is no union, it is awful."

The UAW already represents about 1,400 Flex-N-Gate workers at plants in Michigan, Illinois and Ontario. Other unions represent approximately about 1,000 additional Flex-N-Gate workers.

Estrada said employees at nonunion Flex-N-Gate plants earn about $10 per hour even if they have more than 10 years of service with the company. Workers the UAW represents at Flex-N-Gate earn about $14 per hour, she said.

A Flex-N-Gate spokesman declined to confirm the numbers.

"Flex-N-Gate associates receive competitive wages, enjoy quality growth opportunities and benefit from our ongoing commitment to safe working conditions," the company said in an e-mailed statement. "The vast majority of Flex-N-Gate associates are happy with their employment."

In addition, UAW members at Flex-N-Gate union-represented plants in Warren and Belvidere, Ill., are bargaining for new contracts.